El Salvador’s Bold Move: Defying IMF Demands with a $100 Million Bitcoin Purchase
El Salvador has made its largest single-day Bitcoin (BTC) purchase since the cryptocurrency’s launch in 2021, acquiring approximately 1,090 BTC worth around $100 million as prices fell below $90,000 on November 18. This move marks a significant increase in the country’s national reserves, representing a 17% boost in just seven days. The acquisition is the most substantial addition to El Salvador’s holdings in a single session, showcasing the government’s commitment to its dollar-cost averaging program.
President Nayib Bukele has been a vocal supporter of Bitcoin, and this purchase demonstrates his administration’s willingness to accumulate the cryptocurrency despite external pressures. The dollar-cost averaging program, launched in November 2022, involves buying 1 BTC per day, and the government has maintained this strategy through both bull and bear cycles. Occasionally, the administration adds larger tranches when prices drop sharply, as seen in this recent purchase.
Structure and Transparency in the Chain
The newly acquired coins will be added to El Salvador’s Strategic Bitcoin Reserve, a custody framework introduced by the National Bitcoin Office in August 2025. This structure distributes holdings across multiple wallets, each limited to 500 BTC, with a public dashboard aggregating the balances. Before this purchase, the disclosed reserves were between 6,100 and 6,313 BTC. According to third-party trackers, including Bitcoin Treasuries and KuCoin, the updated figure now stands at 7,474 BTC.
The timing of this purchase is notable, as it positions El Salvador as one of the few institutional buyers willing to increase exposure during a risk-off session. This move has an impact on thin spot order books, and the acquisition represents a small fraction of daily Bitcoin turnover. The purchase also reignites tensions with the International Monetary Fund (IMF), which has expressed concerns about the country’s financial stability and fiscal risks associated with its Bitcoin holdings.
IMF Demands and El Salvador’s Response
El Salvador secured a $1.4 billion 40-month extended fund facility in late 2024 and early 2025, with loan documents requiring the government to cut provisions of its 2021 Bitcoin Law. Tax payments in Bitcoin were banned, and private sector acceptance went from mandatory to voluntary. However, President Bukele has continued to buy Bitcoin, contradicting the terms of the program. The government maintains that its daily purchasing policy remains consistent with the IMF’s conditionality, despite the lack of clarity on how purchases by the National Bitcoin Office prevent the state’s overall risk from increasing.
Market Depth and Confident Signaling
The $100 million order has symbolic significance beyond its size, as El Salvador operates one of the few state Bitcoin treasuries and has shown a willingness to take deductions even on multi-year IMF commitments. The purchase came as Bitcoin fell below $90,000 for the first time in about seven months, triggering selling from leveraged positions and institutional holders. From a market microstructure perspective, the transaction provides visible support in thin books during a session in which most institutional capital fled risk assets.
The government’s dashboard update and President Bukele’s public disclosure reaffirm the government’s commitment to accumulation, regardless of short-term price movements or external pressure from multilateral lenders. This move demonstrates El Salvador’s confidence in Bitcoin’s long-term potential and its willingness to defy IMF demands. For more information, visit https://cryptoslate.com/el-salvador-buys-the-dip-defying-imf-demands-over-100m-in-btc-added-as-price-wobbles/
